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All posts for the month July, 2016

Regional Home Prices Might Still Become Much More Pricey Some Reports Show

Published July 25, 2016 by Real Estate Leads

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Sales data as recently published by Canadian Real Estate Association (CREA ) { Summary: Home sales #’s in Canada peaked in April 2016 and have slid down slightly for the past 2-months. }

“Home Affordability” tops the list of concerns of the majority of young (and old) Canadian couples and families, especially areas on the southern oceanic coasts of the country.

Yet this period of time might just be like riding a roller-coaster re-engaging in the 2nd chain for the remaining journey up. A recent report from NBF, National Bank Financial, suggests that home affordability could further drop (similarly like a counterweight on an elevator.)

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Data from www.numbeo.com (National Bank Financial) showing Canada’s 3 largest cities compared to a baker’s dozen other European, North American and the Asia-Pacific big cities. Canadian affordability levels are similar conditions being experienced in Australia.

According to the above survey, it’s still more affordable to afford a downtown Toronto or Vancouver condo than in: Tokyo, New York, Hong Kong, London, Rome, Paris, Stockholm Sweden, or Vienna Italy.

At first glance the above chart seems to set the stage for further deterioration of home affordability in Vancouver & Toronto. However, other parts of Canada have created more of a balance in the big picture – with several provincial areas have seen home price decreases.

Although there are greater hardships in other cities, on a global level, future price trends cannot be predicted from it. Interest rates (near-zero and negative rates) have surely inflated the overall home price bubble. Thus, have created much more speculation and potential volatility in either direction in the market.

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Housing inventory on the market are at 6-year lows in Toronto and Vancouver but sales are 5.1% higher this June 2016 than 1 year ago. The average home price in Canada stood at $503,300 in June 2016, an 11.2% increase over the preceding year.

However, most of that growth is concentrated in Toronto & Vancouver.

What is your personal prediction? We’d like to hear from you about this article or any other questions or comments your may have.

The Best Real-Deal-Estate Agent Prospecting Tips

Published July 18, 2016 by Real Estate Leads

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Making money is every agent’s real goal. RealEstateLeads.ca will provide you with 40-60 fresh and real leads per month – but it never hurts to do extra prospecting to catch that extra fish or two.

A. Plan

There are various reasons why agents “give up” on prospective customers.

Maybe the critical reasons why so many prospects eventually spiral out of control one is that many or most agents really don’t really have a well thought out plan including: scripts, a clear value proposition, objection solutions, and measurement tools. Your mindset should be that of running a business. However, about 9 out of 10 agents do little, or no performance tracking. Tracking your results (and failures) is only an advantage in achieving real estate success. Have your notebook/diary always handy!

Here is a typical outline of an initial dialog with a prospect:

· * Location: find out where do they want to live?
· * Price: About what price are they shopping for.
· * Motivation: What brings the prospect into the market?
· * Progress: Ask the prospect how long s/he have been looking for a new home.
· * Financing: Find out if they a cash buyer or a mortgage buyer.
· * Appointments: Set the 1st one.

Do you often leave a voice mail, or do you often not leave a voicemail? One of the most important ways to improve your numbers is to simply be aware of your approaches.

B. Organize your leads

An “A”-grade prospect is one that is 1) ready, 2) willing, and 3) able to buy in the next 30-40 days. A “B”-grade prospect intends to close between 40-90 days, while a C-grade prospect projects to buy in more in 3+ more months.

For an A-prospect, your objective is always to set an appointment. (because it is impossible to sell a house without an appointment.) Never say “I’ll call you back in a few days” – because you will just be wasting that much time. Always strive to set appointments with your A-leads.

If a lead is a “B” or a “C,” enter them into the email drip system then follow up with them once every 2-3 weeks.

Most agents, when they have a hot A-prospect in their queue, they tend to shy away from talking a lot. However, the minimum time you should be spending on the phone with them at this point is 7-9 minutes. If you have a prospect that is itching buy a $800,000 house with a $24,000 commission – you should be willing to spend at least 10-100 minutes with them. In order to do engage them for at least 10 minutes you need to activate building-a-relationship-mode in your mind. Keep in mind that this person needs you, and you should be confident in building up a relationship with them, because you are part of the equation towards something they need – a licensed real estate agent.

The top-priority people you should meet with are your A-prospects. In other words, you should focus most heavily on your dollar productive activities.

C. Following up is mandatory

Here are some revealing (approximate) facts:
· 47% of agents never follow up with a prospect (nuts!)
· 24% of agents make a 2nd contact and then decide to let it go
· 11% of agents make only 3 contacts on average
· Only 9% of agents make more than 3+ contacts
· 2% of sales are made on the 1st contact
· 3% of sales on the 2nd contact
· 5% of sales on the 3rd contact
· 10% of sales are made on the 4th contact
· 20% of sales of the 5th conversation

D. Script rehearsal

If you want to memorize your script – an easy way to do it is to record it on your phone. Then while you’re driving about, you can listen to the recording repetitively. By doing so, after a handful of days, your mind will have your script permanently burned into memory. Investing in memorized a couple of good scripts helps you mix and merge them to then be able to say the right key things instantly at the right time.

E. Talk to prospects like talking to a friend

No need to ever be nervous on the phone. To build rapport fast, feel (and therefore project to them) like you’re talking to a friend. You’re offering your clients “friendly” help and assistance.

A good reminder is that have two ears and one mouth: we are supposed to listen twice as much as we talk. But, you are the one that should be in control of the conversation. So your basic approach should be “answer then ask” or “acknowledge then ask”. Repeat/paraphrase what the prospect just said to you – they like knowing that you are actually listening to them. Structure/flowchart ask questions so whatever answers they have, you can further guide the conversation.

F. Don’t say “Can I have your phone number?”

Saying “Can I have your phone number?” is not a good idea. Just say affirmatively “What is the best phone number to reach you at? Home or your cellphone?”

G. Prioritize Appointments

Prospecting really begins with the first contact with your lead. Exchanging emails with your leads can be entertaining, but you can’t sell a house until you’ve had a decent voice conversation with a buyer. Typically, an agent can’t sell a house without first having completed an appointment as well.

One of the single common denominators of top producing agents is that they put in time *every day* to get that next appointment with their priority leads/prospects. They communicate *every day* until they have a new appointment.

H. Talk finance

If your prospect is on your “A”-list, you should talk about mortgage & financing. First inquire, of him or her whether they are cash buyer or requiring a mortgage. You need make sure that the prospect you are talking to is able to afford the home they are looking at. If they are a cash buyer, they should get a letter, or account statement, from their bank to walk the talk and to make sure that they won’t require a mortgage after all.

I. Focus on call quality rather than quantity

After prioritizing your leads, start calling them. How many can speak to in an hour? Forget that. You should care more about what you do with each prospect when you are on the phone with, rather than getting through your list as fast as possible. Build as much rapport as possible within reason; seeking to understand rather than being understood. Understand where each person is coming from. Take notes next to their name.

J. Close the appointment

After asking mortgage & financing questions of your A-list prospects, is the best time to close for the appointment. Most agents think it’s too early to set an appointment and say things like “Well now, why don’t I email you some listings?” Rather, here’s the basic line for setting the appointment: “(Name), based on the information we’ve just discussed, here’s what I recommend we do… Let’s set up a time to get together at my office where we can go over the whole home-buying process. I furnish a complete market overview and then we’ll set up a time to go look at homes of your choosing… How does that sound?”

K. Persist

As the statistics in section C state indirectly: about 80% of sales are made with 5+ contacts, implying that most agents are giving-up way too early. Work on your mindset, determination, and finesse; as most clients don’t like cold calling. You must persist; because 80% of sales are made between after the 5th contact.

Following a good action plan can take an agent all the way up the ladder of success. Many real estate agents don’t work their leads enough, but these tips are tried and true and golden. Work on practicing the skills listed above every day, even from the beach.

Did you find this article insightful? We’d like to hear from you about this article or any other questions or comments your may have.

Home Construction In Canada is Soaring ( Faster than Rises in Home Prices )

Published July 11, 2016 by Real Estate Leads

 

RELP1The Canadian housing market is still hot and isn’t showing any signs of cooling yet. Spending on new residential construction totaled $4.2 billion in April, up 8.4% from the same month a year earlier.

Statistics Canada published data recently on the areas in Canada that are showing high housing growth rates.

Condo construction is up nearly 48% in a year in Vancouver. In Toronto that figure is up by 27%. Detached new home building is up 17% in Vancouver and 36% in Toronto.

However, house prices in Vancouver have seen 30% growth and 15% in Toronto over the past 12 months. The housing stat numbers are even bigger.

But the numbers are very different in the oil producing provinces of Alberta, Saskatchewan, & Newfoundland.

Spending on new housing construction decreased in five provinces, with Alberta registering the largest decline, followed by Saskatchewan and Manitoba.

In Alberta, decreased investment occurred in *all* dwelling types, although the decline was mainly attributable to lower demand and spending on single-family dwellings.

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This construction boom could wind up being good or bad news for Canada’s real estate markets. It could create an oversupply or fulfill demand squarely.

Reasons for optimism

These numbers portray that Canadian developers are responding to continuously rising demand in Vancouver & Toronto.

Vancouver & Toronto have also experienced unexpected high job growth in the past several years; which has pushed metropolitan population up; thereby increasing demand on housing.

Large intakes of permanent resident immigrants (approaching a quarter-million per year) summed together with the economic calamity of oil-producing regions have bolstered population migration into Vancouver & Toronto.

For other reasons as well; real estate in those 2 cities is not likely to weaken over the coming years. However, a continued upswing in new condo buildings could take some pressure off prices.

Bearish perspectives:

The current boom in condo construction is a sign that Canada’s housing markets are getting stronger. Vancouver and Toronto have both seen a hot market in home sales, but some of which could be explained through foreign investment and house-flipping as spoken about in previous articles.

So if indeed speculation is inflating demand today through overbuilding, then a correction could be more of a higher dive than in the past. Why? When house price growth slows, speculators rapidly start disappearing from the scene, exposing some of the “virtual demand” “demand” that wasn’t so naturally there after all.

So a constant boom in condo construction, resulting in slower price rises, then could end up sending prices lower than otherwise expected when the house-flippers and foreign speculators start to scatter elsewhere.

Did you find this article enlightening? If so, we’d love to hear from you.

Expected Ramifications of Brexit on Canadian Mortgage Rates

Published July 4, 2016 by Real Estate Leads

REL_Brexit-ImageThe Toronto Sun recently reported that anticipated lower interest rates, spurred by the Brexit vote alludes that the Canada housing markets may see downward pressure on rates and may help generate more market activity; while having a moderating influence on British property prices.

The implications of the vote result of the Brexit referendum, concerning the exit from the European Union, will certainly generate long-term effects to be felt across the Atlantic; with ripples extending to the world all over, economically speaking.

Canada’s real estate marketplace may be able to leverage the now altered global financial landscape to its own advantage. Canada could serve as a safer haven for investors seeking more economic certainty. The expected forthcoming market uncertainty over the next half a year could make Canadian investors with global portfolios more nervous – and instead invest more domestically. They just want the stability that Canada’s real estate market has to offer when parking their money.

The vote result should also have a parallel effect on Federal Reserve rates. Therefore, interest rates worldwide are more likely to remain even lower than they have been, for even longer projections than have been cast before – resulting from the deep uncertainty over Britain’s and the EU’s economic fate. It is likely that Canadian rates will sink to all-time lows, keeping mortgage rates at an extreme low; enabling more activity in all sectors of Canadian Real Estate.

Vancouver and Toronto are expected to remain overheated due to more downward pressure on interest rates.

We are also likely going to witness a weakening of the British pound, which would make U.K. goods cheaper to import, but create a higher wall for Canadian exports to the United Kingdom. Also Canadian politicians have been working on free trade agreements with the European Union, which will now have to be tailored to mesh singularly with the UK. That could take our sloth-like politicians years to reformulate.

Thank you for reading the RealEstateLeads.ca blog.